https://www.taxtmi.com/caselaws?id=38794 Interest on delayed contractual dues is taxable only where it arises under a statute or a contract. Where no such legal source exists and the amount is merely labelled as interest but in substance compensates the claimant for being kept out of money due, it is treated as compensation or an ex gratia payment rather than income. On the facts noted, the arbitral award was characterised as compensatory, so the amount was held not to be a revenue receipt or taxable income. en-us Tue, 01 Mar 1977 00:00:00 +0530 Fri, 09 Apr 2010 11:04:43 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=38794 Interest on delayed contractual dues is taxable only where it arises under a statute or a contract. Where no such legal source exists and the amount is merely labelled as interest but in substance compensates the claimant for being kept out of money due, it is treated as compensation or an ex gratia payment rather than income. On the facts noted, the arbitral award was characterised as compensatory, so the amount was held not to be a revenue receipt or taxable income. Case-Laws Income Tax Tue, 01 Mar 1977 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=38794